Title
Consider and take action on a resolution authorizing an assignment and assumption agreement by and between Lakeside Bayou, LLC, the City of League City, and Land Strategies Management, LLC d/b/a Starwood Land for the Detention Facility Development Agreement related to the for the Bayridge Flood Reduction Phase 4 Project (DR1904) (Executive Director of Capital Projects)
Background:
Approval of this item will authorize an assignment and assumption agreement by and between Lakeside Bayou, LLC, the City of League City, and Land Strategies Management, LLC d/b/a Starwood Land for the Detention Facility Development Agreement related to the Bayridge Flood Reduction Phase 4 (Gum Bayou) Project (DR1904).
In September 2024, City Council approved (Resolution 2024-179) an agreement with Lakeside Bayou, LLC to construct a 200-acre-foot detention facility for the Bayridge Flood Reduction Phase 4 Project (DR1904). The City’s participation is $4,840,000, covering its purchase of 200 acre-feet of detention capacity within the Lakeside Bayou development. The facility will expand detention within the Gum Bayou watershed to reduce flooding for Bay Ridge, Hidden Lakes, Whispering Lakes, and the CCISD Educational Village. The detention facility improves Gum Bayou conveyance, reduces stormwater peaks, and eliminates the need for the City to acquire and build its own 200-acre-foot detention.
Lakeside Bayou, LLC has since contracted to sell the property to Land Strategies Management, LLC d/b/a Starwood Land (“Starwood”), which is requesting City consent to assume the agreement and complete the detention facility under the same terms, including bonding and performance obligations. The Lakeside Bayou, LLC has submitted an official assignment and assumption request as presented in Attachment 3.
About Land Strategies Management, LLC (Starwood Land)
Starwood Land is a national residential land developer headquartered in Florida with active projects in Texas and California. Since 2007, Starwood has completed nearly $4 billion in residential land sales and delivered more than 50,000 home sites in over 100 master-planned communities across 11 states. Its Texas communities include Sunterra, Lago Mar, Sierra Vista, and Emberly.
Starwood plans to close on the Lakeside Bayou property which is located in Texas City before the end of 2025 and begin detention facility construction in early 2026 on the same schedule and design basis as previously approved. For more information see Attachment 4.
Summary of Request
This item authorizes execution of an Assignment and Assumption Agreement among Lakeside Bayou, LLC (Assignor), Land Strategies Management, LLC d/b/a Starwood Land (Assignee), and the City. Under this agreement:
• Starwood assumes all obligations of Lakeside Bayou, LLC under the existing Detention Facility Development Agreement.
• City consent is conditional upon the property sale closing and proof of recorded deed.
• Starwood must maintain the $4,840,000 performance bond required by Section 3.2 of the original agreement.
• Starwood must complete design, construction, and conveyance of the required drainage capacity easement under the Agreement.
• This approval applies only to the assignment to Starwood. Any future transfer to a new or related entity will require separate City Council approval under Section 8.3 of the existing agreement.
The Bayridge subdivision has been historically prone to flooding during major storms due to inadequacies in the storm system inside the neighborhood and undersized detention facilities. The Gum Bayou Watershed is impaired due to the limited conveyance capacity of Gum Bayou. The 2019 GO Bond Program provided funding for four (4) phases of improvements within this watershed. Phases 1 thru 3 were Bay Ridge subdivision specific projects which consist of neighborhood storm sewer and inlet improvements (completed in 2022), construction of a stormwater pump station and expansion of the volume of the existing detention pond (completed in summer 2024) and rebuilding Bay Ridge Drive to reduce the ability of stormwater sheet flow from SH 96 diverting into the neighborhood (currently under construction). The 4th and final phase of improvements was initially packaged as a Bay Ridge Project with the first 3 phases to help better meet the minimum requirements for available grants after Hurricane Harvey and was called the Bay Ridge Flood Reduction, Phase 4 Project. This name is a misnomer as this project will actually help residents within the Bay Ridge, Hidden Lakes, and Whispering Lakes subdivisions, Hidden Lake Commercial Tracts, and the CCISD Educational Village by improving stormwater conveyance within the Gum Bayou. This conveyance project requires approximately 275 acre-feet of detention mitigation of which 200 acre-feet is to be developed in Lakeside Bayou Development. Council has set the current budget for Phase 4 at an all-in amount of $12M.
The current executed agreement (See Attachment 5) outlines the purchase terms of the 200 acre-feet of capacity within the Lakeside Development detention pond for the fixed amount of $4,840,000. This payment will be made via a schedule of progressive payments based on a percentage of project completion. Other aspects are also covered in the agreement such as review of the developers plans, inspection and acceptance of the work, as well as future maintenance responsibilities.
Attachments:
1. Proposed Resolution
2. Exhibit A - Assignment and Assumption Agreement
3. Lakeside Bayou Request Letter
4. Information on Starwood Land
5. Executed Detention Facility Agreement with Lakeside Bayou
6. Lakeside Bayou Concept Land Plan with League City Basin
7. CIP Project Sheet
8. CIP Aerial Map
FUNDING
{X} Not Applicable
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #1: Develop and Maintain our Infrastructure.